Top 5 Ways to Curb Your Overspending Habits

We’ve all been there. You had a summer of fun and now you’re dealing with a ton of unexpected debt. It’s understandable to feel overwhelmed and stressed, especially as you face adjusting back to a tighter budget. I get it. I’ve been in your shoes.?

Just this year I had to curb my own overspending on gear for my outdoor hobbies. I realized there were better ways for me to spend $300 than that fancy fishing rod I had my eye on. Reeling in your spending habits is completely possible when you look at it the right way. Here’s how I get back on track after overspending.?

Forgive Yourself?

First of all, try not to beat yourself up. There can be a lot of emotional feelings tied up in money. And for many of us, that emotion is shame. We fall into the same old patterns, lose control, and we don’t get where we want to go.

But giving yourself grief over something that every single person struggles with will only exacerbate the amount of stress and overwhelm you feel about your habit of overspending.?

More often than not, it comes down to simple daily spending habits. People stress that when they try to get on a budget, they blow it time and time again. Then they throw their hands up and get discouraged.

My advice is to find one success at a time and build off of it. Look closely at your spending habits and find a simple one to eliminate. For example, perhaps you love a good latte from a pricey drive thru. Spend the next week making your cup of joe to go and celebrate by ordering up your craft latte on day 8. Then challenge yourself to make it a month. Then 3 months. Okay, now you’re getting somewhere!

Your overall strategy and where you want to end up should ultimately be your guide. But there's room in there for little mistakes and missteps.?

Spending: Is It a Diet or a Lifestyle?

Philosophically, think of your spending like a habit. You can develop good habits and bad habits. And when you have a bad habit, consider how tough it can be to break.

It's like trying to get on a diet or quit smoking. So often people come to me with lots of "shoulds" and shame around why they don't handle their money well enough. Sometimes peoples’ best financial intentions get out of line with a big holiday or extravagant vacation. It's true, no one likes looking at January credit card statements or checking the bills after the beach.?

None of us is perfect, and we're all going to make mistakes. We all have regrets around times we’ve binged. We binge on Netflix, ice cream, video games, and yes—money. It's human nature.

Here’s the truth, I’m not proud that I smoked from ages 12 to 25. But I sure am proud that I quit. It was one of the hardest things I’ve ever done. It took an enormous amount of determination, grit, willpower, and personal discomfort.?

At first, I would “quit” by not buying cigarettes but then ask a friend for a smoke. Honestly, there were a lot of false starts like that. I tried about five or six times before I actually made it happen by resolving to get better. With each attempt, I quit for longer and longer and ultimately changed the habit. Remember to start small with one tiny shift at a time. The momentum will build.

Get Back on Task

If you’ve overspent, rather than berating yourself, step back into a solid spending strategy. Just like any other habit you're trying to break. Every time you make a mistake is an opportunity to do better.

I learned this tip from the book Atomic Habits. Have you read it? It’s an amazing one. The author, James Clear, emphasizes that we don't actually break habits. We just replace them with new ones.?

Recall my fishing gear fiasco? Well, instead of buying more, I pivoted into making a game out of my overspending habit. I asked myself: How much money can I get into my wealth-building account this month vs purchasing that $300 fishing pole? I love a good challenge.?

Whatever your costly hobby or overspending weak spot might be, think in terms of your ultimate goals rather than breaking your budget down into overwhelming line items.?

Keep the End Goal in Mind?

What are your big picture financial goals? For most of us, it’s having more resources coming in than going out. It's having enough financial independence to have choices.?

It's not all or nothing. It’s living within the boundaries of your budget. The key is knowing where those boundaries lie and how to spend within them. That may mean taking your priorities to heart.?

For example, I drive a Subaru with pride. Not only is it a great car, but I know my family is taken care of because of my consistent financial choices. To me, that’s what matters. That’s the end goal.?

Speaking from Experience

Sometimes, you need a little nudge to get going. Items in motion stay in motion, right? It can be valuable to develop a strategy for accountability. This might mean setting up a monthly, biweekly, or weekly automated deposit into a slush fund account set aside for emergencies or specific goals. The more you can automate, the better.

Check all your accounts (retirement, college funds, etc.) and identify which one needs more support to get where you want to be. If you don’t know where you need them to be, ask a professional.?

In any sport or professional field, peak performance comes from having a coach with the know-how and big-picture ability to remind you of your goals. These important people in our lives help keep our eyes on the prize. We have parents, teachers, mentors, and coaches. Why should finding financial independence be any different??

Like an accountability buddy, a financial advisor is there to support your goals. Because accountability isn't about judgment or punishment. In fact, it can and should be positive, keeping your boundaries in check and giving you that extra dose of cheerleading to get you across the finish line.